UFP Technologies (NASDAQ: UFPT) and Advanced Drainage Systems (NYSE:WMS) are both small-cap industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.
Risk & Volatility
UFP Technologies has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500. Comparatively, Advanced Drainage Systems has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.
Earnings & Valuation
This table compares UFP Technologies and Advanced Drainage Systems’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|UFP Technologies||$147.84 million||1.58||$9.21 million||$1.25||25.60|
|Advanced Drainage Systems||$1.26 billion||1.12||$32.95 million||$0.50||50.20|
Advanced Drainage Systems has higher revenue and earnings than UFP Technologies. UFP Technologies is trading at a lower price-to-earnings ratio than Advanced Drainage Systems, indicating that it is currently the more affordable of the two stocks.
Advanced Drainage Systems pays an annual dividend of $0.28 per share and has a dividend yield of 1.1%. UFP Technologies does not pay a dividend. Advanced Drainage Systems pays out 56.0% of its earnings in the form of a dividend. Advanced Drainage Systems has increased its dividend for 2 consecutive years.
This table compares UFP Technologies and Advanced Drainage Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Advanced Drainage Systems||3.67%||45.42%||3.58%|
This is a breakdown of current recommendations for UFP Technologies and Advanced Drainage Systems, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Advanced Drainage Systems||0||4||1||0||2.20|
Advanced Drainage Systems has a consensus target price of $26.25, indicating a potential upside of 4.58%. Given Advanced Drainage Systems’ higher possible upside, analysts plainly believe Advanced Drainage Systems is more favorable than UFP Technologies.
Insider & Institutional Ownership
69.3% of UFP Technologies shares are owned by institutional investors. Comparatively, 79.6% of Advanced Drainage Systems shares are owned by institutional investors. 13.3% of UFP Technologies shares are owned by company insiders. Comparatively, 21.4% of Advanced Drainage Systems shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Advanced Drainage Systems beats UFP Technologies on 11 of the 16 factors compared between the two stocks.
About UFP Technologies
UFP Technologies, Inc. is a designer and custom converter of foams, plastics, composites and natural fiber materials. The Company is engaged in providing solutions to customers primarily within the medical, automotive, consumer, electronics, industrial, and aerospace and defense markets. It converts these materials using laminating, molding, and fabricating manufacturing technologies. The Company’s raw materials consist of polyethylene and polyurethane foams, sheet plastics, pulp fiber, cross-linked polyethylene and reticulated polyurethane foams, fabric and foam laminates, and natural fiber materials. The Company converts these materials to provide customers various solutions, including automotive interior trim, medical device components, disposable wound care components, military uniform and gear components, athletic padding, air filtration, high-temperature insulation, abrasive nail files and other beauty aids, and cushion packaging for their products.
About Advanced Drainage Systems
Advanced Drainage Systems, Inc. designs, manufactures, and markets thermoplastic corrugated pipes and related water management products for non-residential, residential, agriculture, and infrastructure applications in the United States and internationally. The company provides single, double, and triple wall corrugated polypropylene and polyethylene pipes; and allied products comprising storm retention/detention and septic chambers, polyvinyl chloride drainage structures, fittings, and water quality filters and separators. It also purchases and distributes construction fabrics, as well as other geosynthetic products for soil stabilization, reinforcement, filtration, separation, erosion control, and sub-surface drainage. The company was founded in 1966 and is headquartered in Hilliard, Ohio.
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